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News18
01-08-2025
- Automotive
- News18
From Auto To Pharma: India's Key Sectors Most Exposed To Trump's 25% Tariffs
Last Updated: Analysts expect textiles, automobiles, oil & gas, and pharmaceuticals to be the most vulnerable to these measures All major sectoral indices, barring FMCG and media, ended lower on Thursday as investor sentiment weakened after US President Donald Trump announced a 25% tariff on Indian goods starting August 1, along with additional non-tariff penalties on crude oil purchases from Russia. Analysts expect textiles, automobiles, oil & gas, and pharmaceuticals to be the most vulnerable to these measures. The textile sector is likely to be among the hardest hit, given the US is its biggest market. 'Margins are expected to take a hit till global trade stabilises," said Prerna Jhunjhunwala, VP equity research (textile and retail), Elara Capital. Shares of Vardhman Textiles and Kitex Garments slumped 5% each, while Gokaldas Exports shed 4.5%. Indo Count Industries and Welspun Living also lost 4% apiece. Sunny Agrawal, head of fundamental equity research, SBICAPS Securities, noted that 'textiles and gems & jewellery stocks are expected to see the most adverse impact due to their high dependence on the US." Automobiles The impact of tariffs on the auto sector remains less clear, as automobiles were already subject to 25% levies under the earlier round of tariff hikes. Analysts believe domestic-focused auto companies may remain largely insulated, but firms with significant US exposure could face headwinds. The Nifty Auto index slipped as much as 1.5% intraday before closing 0.4% lower. Balkrishna Industries fell 2.8%, Bharat Forge 2.3%, while Exide Industries, Samvardhana Motherson International and MRF closed over 1% lower. However, Emkay Global said the sector is 'better placed than feared" since India exports very few vehicles to the US, and auto component makers could benefit if tariffs hit rivals in China, Canada and Mexico. Oil & Gas The Nifty Oil & Gas index declined 1.5%, with 14 of the 15 constituent stocks ending in the red. Mahanagar Gas dropped 4.1%, Adani Total Gas 3.4% and Gujarat State Petronet 2.8%. Shares of IOC, Hindustan Petroleum, GAIL, Oil India and BPCL fell between 1.5% and 2.5%. 'Investors are factoring in supply constraints due to US sanctions on Russian crude purchases by China and India, along with additional penalties on India's Russian oil imports," said Swarnendu Bhushan, co-head of institutional research at Prabhudas Lilladher. He added that higher crude prices could weigh on gross marketing margins of oil marketing companies. Pharmaceuticals Pharma stocks also weakened, with the Nifty Pharma index falling 1.3% and the Nifty Healthcare index down 1.1%. The US is the biggest market for Indian drugmakers, raising concerns about potential fallout. 'In the absence of overnight alternatives for generic drug makers, the US is unlikely to impose tariffs on pharma, as healthcare costs there would surge significantly," said Agrawal. Still, he noted that despite Washington's push for domestic manufacturing, questions remain over the viability of producing at scale in the US. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
01-08-2025
- Business
- Economic Times
How will Trump's 25% tariffs affect India's key sectors?
Indian markets reacted negatively to US tariffs. Donald Trump imposed 25% tariffs on India. Most sectoral indices closed lower. Textiles, automobiles, oil & gas, and pharmaceuticals are likely to be affected. Textile stocks could face pressure. There is ambiguity on the auto sector impact. Oil & gas sector also faced a drop. Pharma sector also declined due to the tariffs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: All sectoral indices, except FMCG and media, closed lower on Thursday as investor sentiment turned sour after US President Donald Trump announced 25% tariffs on India effective on August 1 along with additional non-tariff penalties for buying crude oil from sectors like textiles, automobiles, oil & gas and pharmaceuticals are likely to be more susceptible to the adverse impact of tariff imposition. A look at what's in store for the sectors that are expected to bear the brunt of the tariffs:Textile stocks could remain under pressure as the sector will be among the most impacted by the tariffs given that US is its biggest market."Margins are expected to take a hit till global trade stabilises," said Prerna Jhunjhunwala,VP equity research, textile and retail, Elara Capital. Vardhman Textiles and Kitex Garments tumbled 5% each while Gokaldas Exports dropped 4.5% on Thursday. Indo Count Industries and Welspun Living shed 4% each. "Textiles and gems and jewellery stocks are expected to see the most adverse impact due to their high dependence on the US," said Sunny Agrawal, head of Fundamental Equity Research, SBICAPS said there is some ambiguity on the impact of tariffs on the auto sector since it was already subjected to 25% tariffs in the earlier round of tariff imposition."While domestic focused auto companies are not expected to see major impact, companies which have a high exposure to the US markets are likely to witness impact, but the extent of impact is unclear," said Nifty Auto Index shed as much as 1.5% during the day but erased some of the losses and closed 0.4% lower. Balkrishna Industries fell 2.8% and Bharat Forge declined 2.3%. Exide industries, Samvardhana Motherson International and MRF Ltd closed over 1% lower. Emkay Global said auto is better placed than feared (as India barely exports vehicles to the US, while auto components may eventually benefit from tariffs on China, Canada, and Mexico).The Nifty oil & gas index dropped 1.5% on Thursday with 14 out of 15 stocks on the index ending lower. Mahanagar Gas tumbled 4.1% while Adani Total Gas and Gujarat State Petronet slid 3.4% and 2.8%, respectively."Investors are beginning to build in the impact of supply constraints due to the US sanctions on Russia for crude oil purchases by China and India and the non-tariff penalties for buying crude oil from Russia on India," said Swarnendu Bhushan, co-head - Institutional Research, Prabhudas Lilladher. "This could drive up crude oil prices and result in lower gross marketing margins for oil marketing companies." IOC, Hindustan Petroleum, GAIL India Oil India and Bharat Petroleum Corporation moved between 1.5- 2.5% Pharma fell 1.3% and Nifty healthcare index dropped 1.1% on Thursday as US is the biggest market for domestic drugmakers. "In absence of overnight alternatives for generic drug makers, US is not likely to impose tariffs on pharma as healthcare cost in US would move up significantly," said Agrawal."Although US has allayed domestic manufacturing, there have been concerns on viability to produce and sell in the US."
Time of India
01-08-2025
- Automotive
- Time of India
How will Trump's 25% tariffs affect India's key sectors?
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: All sectoral indices, except FMCG and media, closed lower on Thursday as investor sentiment turned sour after US President Donald Trump announced 25% tariffs on India effective on August 1 along with additional non-tariff penalties for buying crude oil from sectors like textiles, automobiles, oil & gas and pharmaceuticals are likely to be more susceptible to the adverse impact of tariff imposition. A look at what's in store for the sectors that are expected to bear the brunt of the tariffs:Textile stocks could remain under pressure as the sector will be among the most impacted by the tariffs given that US is its biggest market."Margins are expected to take a hit till global trade stabilises," said Prerna Jhunjhunwala,VP equity research, textile and retail, Elara Capital. Vardhman Textiles and Kitex Garments tumbled 5% each while Gokaldas Exports dropped 4.5% on Thursday. Indo Count Industries and Welspun Living shed 4% each. "Textiles and gems and jewellery stocks are expected to see the most adverse impact due to their high dependence on the US," said Sunny Agrawal, head of Fundamental Equity Research, SBICAPS said there is some ambiguity on the impact of tariffs on the auto sector since it was already subjected to 25% tariffs in the earlier round of tariff imposition."While domestic focused auto companies are not expected to see major impact, companies which have a high exposure to the US markets are likely to witness impact, but the extent of impact is unclear," said Nifty Auto Index shed as much as 1.5% during the day but erased some of the losses and closed 0.4% lower. Balkrishna Industries fell 2.8% and Bharat Forge declined 2.3%. Exide industries, Samvardhana Motherson International and MRF Ltd closed over 1% lower. Emkay Global said auto is better placed than feared (as India barely exports vehicles to the US, while auto components may eventually benefit from tariffs on China, Canada, and Mexico).The Nifty oil & gas index dropped 1.5% on Thursday with 14 out of 15 stocks on the index ending lower. Mahanagar Gas tumbled 4.1% while Adani Total Gas and Gujarat State Petronet slid 3.4% and 2.8%, respectively."Investors are beginning to build in the impact of supply constraints due to the US sanctions on Russia for crude oil purchases by China and India and the non-tariff penalties for buying crude oil from Russia on India," said Swarnendu Bhushan, co-head - Institutional Research, Prabhudas Lilladher. "This could drive up crude oil prices and result in lower gross marketing margins for oil marketing companies." IOC, Hindustan Petroleum, GAIL India Oil India and Bharat Petroleum Corporation moved between 1.5- 2.5% Pharma fell 1.3% and Nifty healthcare index dropped 1.1% on Thursday as US is the biggest market for domestic drugmakers. "In absence of overnight alternatives for generic drug makers, US is not likely to impose tariffs on pharma as healthcare cost in US would move up significantly," said Agrawal."Although US has allayed domestic manufacturing, there have been concerns on viability to produce and sell in the US."
Economic Times
31-07-2025
- Business
- Economic Times
Market Wrap: Sensex ends 296 points lower, Nifty below 24,800 after brushing off Trump tariff salvo
Indian equities ended lower on Thursday but trimmed steeper early losses, as investors interpreted the U.S.'s proposed 25% tariff and unspecified penalties, set to take effect August 1, as a negotiating ploy rather than a definitive policy shift. ADVERTISEMENT The BSE Sensex shed 296.28 points, or 0.36%, to close at 81,185.58, while the NSE Nifty slipped 86.70 points, or 0.35%, to settle at 24,768.35. Both indexes had fallen nearly 0.9% earlier in the session. The benchmarks slid nearly 1% in early trade after U.S. President Donald Trump announced 25% tariffs on India, effective August 1, along with an unspecified penalty. He added that negotiations with India were ongoing. For the month, both the Sensex and Nifty dropped around 3%, with broader markets underperforming amid sustained foreign outflows and weak earnings from IT firms and major financials. Textile stocks were among the hardest hit by the tariff announcement, with Welspun Living, Vardhman Textiles, KPR Mills, and Gokaldas Exports falling between 3.2% and 5.1%. Adani Enterprises declined 4% after reporting a drop in first-quarter profit, hurt by subdued coal demand. ADVERTISEMENT The consumer goods sector rose 1.4%, the day's top gainer, led by Hindustan Unilever. Shares of the FMCG major climbed 3.4% as a revival in rural demand and a refreshed product portfolio lifted quarterly earnings. Mid-cap and small-cap stocks each lost about 1%. ADVERTISEMENT Following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note, said Vinod Nair, Head of Research, Geojit Investments, adding that the domestic market, however, attempted "a strong recovery but by the end of the day it closed with marginal losses, on a monthly expiry day." "Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks. In contrast, oil & gas stocks were the worst hit due to US warnings over Indian energy imports. Overall, the market reflected a cautious yet selective approach. Market continues to hold high hopes for a more favorable tariff outcome in the near-term," said Nair. ADVERTISEMENT As the new series begins, the market is likely to consolidate, but global developments and corporate earnings will continue to drive volatility, said Ajit Mishra, SVP, Research, Religare Broking, adding that "we maintain our cautious stance and recommend a stock-specific approach, given the mixed trends across sectors. Traders should also avoid averaging down on loss-making positions." (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
31-07-2025
- Business
- Time of India
Market Wrap: Sensex ends 296 points lower, Nifty below 24,800 after brushing off Trump tariff salvo
Live Events Expert Views (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian equities ended lower on Thursday but trimmed steeper early losses, as investors interpreted the U.S.'s proposed 25% tariff and unspecified penalties, set to take effect August 1, as a negotiating ploy rather than a definitive policy BSE Sensex shed 296.28 points, or 0.36%, to close at 81,185.58, while the NSE Nifty slipped 86.70 points, or 0.35%, to settle at 24,768.35. Both indexes had fallen nearly 0.9% earlier in the benchmarks slid nearly 1% in early trade after U.S. President Donald Trump announced 25% tariffs on India, effective August 1, along with an unspecified penalty. He added that negotiations with India were the month, both the Sensex and Nifty dropped around 3%, with broader markets underperforming amid sustained foreign outflows and weak earnings from IT firms and major stocks were among the hardest hit by the tariff announcement, with Welspun Living, Vardhman Textiles, KPR Mills, and Gokaldas Exports falling between 3.2% and 5.1%.Adani Enterprises declined 4% after reporting a drop in first-quarter profit, hurt by subdued coal consumer goods sector rose 1.4%, the day's top gainer, led by Hindustan Unilever. Shares of the FMCG major climbed 3.4% as a revival in rural demand and a refreshed product portfolio lifted quarterly and small-cap stocks each lost about 1%.Following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note, said Vinod Nair, Head of Research, Geojit Investments, adding that the domestic market, however, attempted "a strong recovery but by the end of the day it closed with marginal losses, on a monthly expiry day.""Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks. In contrast, oil & gas stocks were the worst hit due to US warnings over Indian energy imports. Overall, the market reflected a cautious yet selective approach. Market continues to hold high hopes for a more favorable tariff outcome in the near-term," said the new series begins, the market is likely to consolidate, but global developments and corporate earnings will continue to drive volatility, said Ajit Mishra, SVP, Research, Religare Broking, adding that "we maintain our cautious stance and recommend a stock-specific approach, given the mixed trends across sectors. Traders should also avoid averaging down on loss-making positions."World equities were mixed Thursday as investors weighed a slew of economic signals, including central bank policy decisions, inflation readings, and the prospect of last-minute trade negotiations ahead of U.S. President Donald Trump's Aug. 1 tariff stocks were supported by earnings, with the pan-European Stoxx 600 holding steady as of 1025 GMT. The index is on pace to end the month up 1.6%, buoyed by easing trade concerns, stronger-than-expected economic data from the U.S. and Europe, and broadly positive corporate shares led gains in Europe, rising more than 1.5% after upbeat earnings from Standard Chartered and France's Société Géné broadest index of global shares was flat, pressured by declines in Chinese markets after official PMI data pointed to weaker-than-expected factory activity in July. The CSI 300 fell 1.8%, its steepest drop since April 7, while Hong Kong's benchmark shed 1.6%.Oil prices slipped Thursday as traders assessed geopolitical risks tied to U.S. President Donald Trump's push for a swift end to the war in Ukraine via additional tariffs, while a surprise increase in U.S. crude inventories added crude futures for September delivery, set to expire later in the day, fell 60 cents, or 0.8%, to $72.64 a barrel by 0955 GMT. U.S. West Texas Intermediate crude for September dropped 58 cents to $ Indian rupee posted its steepest monthly decline in nearly three years on Thursday, pressured by concerns over potential U.S. tariffs and sustained foreign portfolio rupee weakened to 87.74 per dollar, its lowest level since February, after U.S. President Donald Trump threatened a 25% levy on Indian exports along with an unspecified penalty starting Aug. 1. The currency settled at 87.5950, down 0.2% on the day. For the month, the rupee lost 2%, marking its worst performance since September dollar index held steady at 99.8 after gaining nearly 1% in the previous session.
